Microsoft has restructured Copilot pricing from a pure monthly subscription model to a hybrid approach combining a monthly quota with usage-based billing for overages. Most users remain within their monthly allowance, but those exceeding limits can now purchase additional credits or switch to the Auto model. Notably, Copilot's pricing (starting at $30/month) is significantly more competitive than Claude or ChatGPT for typical and complex tasks, making this a material announcement for SMEs evaluating AI tool costs and ROI.